Jupiter: Internet Most Important To Auto Manufacturers - So Where The Hell Are the Advertisers?

NEW YORK, Dec. 10 -- Jupiter Media Metrix , the global leader in Internet and new technology analysis and measurement, today reports that the Web for the automotive industry will be more important to consumers for research and to manufacturers for building and extending customer relationships than for sales transactions. As auto manufacturers learn more about their customers from online and off-line channels, Jupiter forecasts that Internet-generated new car sales will skyrocket from nearly 13 percent of total new car sales in 2001 to 32 percent in 2006, or 5.7 million car sales. Jupiter defines Internet-generated sales as follows: when customers are either referred to a dealership to transact a purchase off-line or they find the dealership with the desired product via the Internet and make the purchase off-line.

``The Internet is becoming an integrated component of the consumers' car buying process by facilitating the gathering of pre-sale information,'' said Julie Ask, Jupiter analyst. ``The ability to research automobiles on scores of Web sites has created an educated customer base armed with information once held by captive dealers. Competing for those buyers inclined to shop online will require dealers to adopt a different skill set -- one that focuses more on responsiveness, openness and service. Dealers who want to succeed must prepare to rise up to the challenge and adapt to a new breed of automotive buyers.''

Additional highlights and forward-looking analysis from the new Jupiter Research automotive report, titled ``Jupiter Online Market Forecast: Automotive,'' include:

A June 2001 Jupiter Consumer Survey reveals that when visiting an auto- related Web site, consumers are most interested in detailed product information (42 percent), side-by-side comparisons (23 percent) and ratings and reviews from other consumers (nine percent). Jupiter analysts have found that consumers who turn to the Web before purchasing a car are looking to reduce time spent at dealerships. Although only four percent of used car sales (1.5 million cars) were Internet-generated transactions in 2001, Jupiter analysts forecast that 12 percent (4.8 million) will be attributed to the Web by 2006. Jupiter analysts believe that although the Internet will never be the dominant source for online-committed used car sales (when customers commit to buying cars online, but final transaction is made in person at a dealership), it will have a strong impact on matching buyers and sellers. Less than one percent of online financial consumers use online financing for new vehicle purchases and merely one-half of one percent do so for used car purchases. However, Jupiter analysts assert that online financial consumers are primed to unlock the potential of this early-stage market. By 2006, the online car financing market will reach 32 billion dollars in agreements and represent nearly four percent of total car financing. According to the Jupiter Internet Automotive Model, 60 percent of vehicle-owning households are currently online, which is slightly higher than the overall U.S. online household penetration (57 percent). By 2006, Jupiter expects both the percent of vehicle-owning households and the total percent of online households to grow to over 76 percent, providing an unparalleled five-year window for online auto sites to influence customer behavior and win customer loyalty. ``The impact of the Internet on the automotive industry extends beyond the initial transaction to lifetime vehicle ownership. Dealers must use the Web to build an adaptive relationship with the consumer, starting with a rich understanding of customers' buying histories and extending to lifetime service of the vehicle,'' Ask said.

Companies interested in purchasing the new Jupiter Research Report can call toll-free at 1-877-464-6627 or visit http://www.jmm.com. Businesses who would like have an analyst present this research at an upcoming event can contact Jamie Kampel at 917-534-6132 or jkampel@jmm.com.

Jupiter Online Automotive Report Methodology

Jupiter utilizes a wide set of data-gathering tools to conduct research, including systematic polling of leading industry executives, extensive consumer surveys, extensive executive surveys, Media Metrix audience measurement data, AdRelevance online advertising metrics and a rigorous approach to building market forecasting models. Jupiter analyses and forecasts are based on a number of methodologies, including close examination of analogous markets (either previous growth of new technologies or relevant off-line market case studies), consumer self-stated intentions culled from proprietary Jupiter surveying, complex market segmentation analysis, and analysis of historical trends. Additionally, all forecast assumptions are rigorously debated in a process designed to capture the collective judgment of analysts with relevant experience and perspectives on each given market. For a fuller explanation of the methodology, please visit http://www.jmm.com.

June 2001 Jupiter Consumer Survey -- In June 2001, Jupiter designed and fielded a survey to online consumers selected randomly from NPD consumer panels. A total of 2,194 individuals responded to the survey. Respondents received an e-mail invitation to participate in the survey, with an attached URL linked to the Web-based survey form. The sample was weighted by a series of demographic and behavioral characteristics to ensure that it was representative of the online population. Demographic weighting variables included age, gender, household income, household education, household type, region, and market size. Additionally, Jupiter took the unconventional step of weighting the data by online tenure and AOL usage, two key determinants of online behavior. Balancing quotas were determined by an ongoing weekly RDD survey of almost 5,000 US households.

November 2001 Jupiter Consumer Survey -- In November 2001, Jupiter designed and fielded a survey to online consumers selected randomly from NPD consumer panels. A total of 2,085 individuals responded to the survey. See ``June 2001 Jupiter Consumer Survey'' methodology above for additional details on how the survey was conducted.

In these survey efforts, Jupiter worked with its research partner NPD on the technical tasks of survey fielding, sample building, balancing, and data processing. NPD, founded in 1953, is one of the largest market research companies in the US and maintains a general research panel of 400,000 households as well as an online panel of 450,000 Internet users. Panel-based market research enables Jupiter to have a baseline knowledge of each survey respondent, increase survey participation rates, and permit careful rationing of survey fielding to reduce survey burnout.

About Jupiter Media Metrix

Jupiter Media Metrix is the global leader in Internet and new technology analysis and measurement. The Company delivers innovative and comprehensive Internet measurement, analysis and events to provide businesses with unmatched global resources for understanding and profiting from the Internet. Jupiter Media Metrix brings together world-class, innovative and market-leading products, services, research methodologies and people. Jupiter Media Metrix services include Media Metrix, AdRelevance, Jupiter Research and Site Measurement. The Company is headquartered in New York City and operates worldwide, across the Americas, Asia Pacific and Europe (as Jupiter MMXI). Visit http://www.jmm.com for more information.